1. Short title and commencement.—(1) This Act may be called the Sick Textile Undertakings
(Nationalisation) Act, 1974.
(2) The provisions of sections 32 and 33 shall come into force at once and the remaining provisions of
this Act shall be deemed to have come into force on the 1st day of April, 1974.
2. Definitions.—(1) In this Act, unless the context otherwise requires,—
(a) “appointed day” means the 1st day of April, 1974;
(b) “bank” means—
(i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(ii) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks)
Act, 1959 (38 of 1959);
(iii) a corresponding new bank constituted under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970);
(iv) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the
Reserve Bank of India Act, 1934 (2 of 1934);
(c) “Commissioner” means a Commissioner of Payments appointed under section 17;
(d) “Custodian” means a Custodian appointed under section 5 of the Sick Textile Undertakings
(Taking Over of Management) Act, 1972 (72 of 1972), and includes the person, or body of persons
authorised by the Central Government to take over the management of a textile undertaking under the
Industries (Development and Regulation) Act, 1951 (65 of 1951);
(e) “National Textile Corporation” means the National Textile Corporation Limited, formed and
registered under the Companies Act, 1956 (1 of 1956);
(f) “notification” means a notification published in the Official Gazette;
(g) “Ordinance” means the Sick Textile Undertakings (Nationalisation) Ordinance,
1974 (12 of 1974);
(h) “owner”, when used in relation to a sick textile undertaking, means any person or firm who or
which is, immediately before the appointed day, the immediate proprietor or lessee or occupier of the
sick textile undertaking or any part thereof, and in the case of a textile company which is being
wound up or the business whereof is being carried on by a liquidator or receiver, includes such
liquidator or receiver, and also includes any agent or manager or such owner but does not include any
person or body of persons authorised under the Industries (Development and Regulation)
Act, 1951 (65 of 1951), or the Sick Textile Undertakings (Taking Over of Management)
Act, 1972 (72 of 1972), to take over the management of the whole or any part of the sick textile
undertaking;
(i) “prescribed” means prescribed by rules made under this Act;
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(j) “sick textile undertaking” means a textile undertaking, specified in the First Schedule, the
management of which has, before the appointed day, been taken over by the Central Government
under the Industries (Development and Regulation) Act, 1951 (65 of 1951), or as the case may be,
vested in the Central Government under the Sick Textile Undertakings (Taking Over of Management)
Act, 1972 (72 of 1972);
(k) “specified date” means such date as the Central Government may, for the purpose of any
provision of this Act, by notification, specify; and different dates may be specified for different
provisions of this Act;
(l) “Subsidiary Textile Corporation” means a Textile Corporation formed by the National Textile
Corporation as its subsidiary;
(m) “textile” includes yarn or fabrics made either wholly or partly of cotton, wool, jute, synthetic
and artificial (man-made) fibres;
(n) “textile company” means a company specified in column (3) of the First Schedule as owning
the textile undertaking specified in the corresponding entry in column (2) of that Schedule;
(o) “textile undertaking” means an undertaking engaged in the manufacture of textiles and to
which the provisions of the Factories Act, 1948 (63 of 1948), apply.
(2) Words and expressions used but not defined in this Act and defined in the Industries
(Development and Regulation) Act, 1951 (65 of 1951), shall have the meanings respectively assigned to
them in that Act.
(3) Words and expressions used but not defined either in this Act or in the Industries (Development
and Regulation) Act, 1951 (65 of 1951), but defined in the Companies Act, 1956 (1 of 1956), shall have
the meanings respectively assigned to them in the Companies Act, 1956.